Angela Moss and Autumn Barber organize a partnership on January 1. Mosss initial net investment is $75,000,

Question:

Angela Moss and Autumn Barber organize a on January 1. Moss’s initial net investment is $75,000, consisting of cash ($17,500), equipment ($82,500), and a note payable reflecting a bank loan for the new business ($25,000). Barber’s initial investment is cash of $31,250. These amounts are the values agreed on by both partners. Prepare journal entries to record
(1) Moss’s investment
(2) Barber’s investment.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...